Correlation Between Surgical Science and Synsam AB
Can any of the company-specific risk be diversified away by investing in both Surgical Science and Synsam AB at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Surgical Science and Synsam AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surgical Science Sweden and Synsam AB, you can compare the effects of market volatilities on Surgical Science and Synsam AB and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Surgical Science with a short position of Synsam AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surgical Science and Synsam AB.
Diversification Opportunities for Surgical Science and Synsam AB
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Surgical and Synsam is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Surgical Science Sweden and Synsam AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synsam AB and Surgical Science is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Surgical Science Sweden are associated (or correlated) with Synsam AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synsam AB has no effect on the direction of Surgical Science i.e., Surgical Science and Synsam AB go up and down completely randomly.
Pair Corralation between Surgical Science and Synsam AB
Assuming the 90 days trading horizon Surgical Science Sweden is expected to under-perform the Synsam AB. In addition to that, Surgical Science is 1.34 times more volatile than Synsam AB. It trades about -0.01 of its total potential returns per unit of risk. Synsam AB is currently generating about 0.01 per unit of volatility. If you would invest 4,168 in Synsam AB on September 12, 2024 and sell it today you would earn a total of 82.00 from holding Synsam AB or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surgical Science Sweden vs. Synsam AB
Performance |
| Timeline |
| Surgical Science Sweden |
| Synsam AB |
Surgical Science and Synsam AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surgical Science and Synsam AB
The main advantage of trading using opposite Surgical Science and Synsam AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surgical Science position performs unexpectedly, Synsam AB can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Synsam AB will offset losses from the drop in Synsam AB's long position.| Surgical Science vs. BICO Group AB | Surgical Science vs. Hexatronic Group AB | Surgical Science vs. Swedencare publ AB | Surgical Science vs. MIPS AB |
| Synsam AB vs. Surgical Science Sweden | Synsam AB vs. Bonesupport Holding AB | Synsam AB vs. Swedencare publ AB | Synsam AB vs. Oncopeptides AB |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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